Due Diligence Part 2

Salespeople want to sell, but when selling private securities, just making the sale isn’t enough. In order to achieve the fundamental goal of “fair dealing for all parties,” brokers must adhere to a higher standard.

As your Managing Broker-Dealer, TOBIN performs due diligence on all selling brokers to assure they are knowledgeable, with a record of proven performance and compliance, and to assure that they thoroughly understand the offering. TOBIN ensures that brokers selling your securities are licensed and certified in every state where they sell, while also screening brokers for conflicts-of-interest, past violations, or unscrupulous activities which may disqualify them as bad actors. When brokers begin making sales, TOBIN monitors and records transaction details showing which investors purchased from which broker and all of the related details.

Another critical part of TOBIN’s service as a Managing Broker-Dealer is paying sales commissions, in a timely manner, on behalf of the issuer. This function lifts a huge burden from the issuer because paying commissions and documentation of the sales would usually fall to the issuer’s accounting staff.

Over the two decades that TOBIN has been in business, the Firm has monitored, recorded and processed nearly one billion dollars in offerings and has paid hundreds of thousands of dollars in commissions to brokers.